Monday, January 18, 2010

As the economy and real estate markets continue to change, the nuances between different areas and different neighborhoods are becoming increasingly magnified.

One neighborhood may show a sales increase, while another neighborhood just blocks away may be experiencing a dramatic drop in sales from the previous year.

While the media publishes its statistics based on national, state, and county trends, this distorts the public’s perception of what could actually be happening in their own neighborhood. We at the Cherniss Group have observed that our local micro markets are often behaving quite differently.

Our observations reveal:Neighboring markets may be performing very differently from each other and national averages.

In a tough lending environment, knowing specific market trends in the neighborhood you are considering is crucial for a successful transaction.

What is actually happening in your market is often different from what you might think or feel.

Don’t mistake feelings for facts.Having all of the facts will help you make an informed decision, whether you are thinking about a purchase or sale in the high end market or entry level market.

Thursday, November 12, 2009

As we all know, short sales can take months and months of waiting for the bank to respond. Well, I just received word that the bank is ready to negotiate this stunning Chatelaine Plan "B" townhouse that faces Crescent Park. This unit is spectacularly done with every upgrade imaginable and in pristine condition (unlike many distressed properties currently on the market).

Monday, September 28, 2009

Tick tock tick tock...So with the clock ticking on the 2009 Home Buyer Tax Credit (which expires at midnight on November 30), here are some facts you need to know about taking advantage of this opportunity.

Who is eligible to claim the tax credit?First time home buyers purchasing any kind of home - new or resale - are eligible for the tax credit. To qualify for the tax credit, a home purchase must occur on or after January 1, 2009 and before December1, 2009. For the purposes of the tax credit, the purchase date is the date when closing occurs and the title to the property transfers to the home owner.

What is the definition of a first-time home buyer?The law defines "first-time home buyer" as a buyer who has not owned a principal residence during thethree-year period prior to the purchase. For married taxpayers, the law tests the homeownership history of both the home buyer and his/her spouse.

For example, if you have not owned a home in the past three years but your spouse has owned aprincipal residence, neither you nor your spouse qualifies for the first-time home buyer tax credit. However, unmarried joint purchasers may allocate the credit amount to any buyer who qualifies as a first-time buyer, such as may occur if a parent jointly purchases a home with a son or daughter. Ownership of a vacation home or rental property not used as a principal residence does not disqualify a buyer as a first-time home buyer.

How is the amount of the tax credit determined? The tax credit is equal to 10% of the home's purchase price up to a maximum of $8,000.

Are there any income limits for claiming the tax credit? Yes, the tax credit amount is reduced for buyers with a modified adjusted gross income (MAGI) of more than $75,000 for single taxpayers and $150,000 for married taxpayers filing a joint return. The tax credit amount is reduced to zero for taxpayers with MAGI of more than $95,000 (single) or $170,000 (married) and is reduced proportionally for taxpayers with MAGIs between these amounts.

I am not a U.S. citizen. Can I claim the tax credit? Maybe. Anyone who is not a nonresident alien (as defined by the IRS), who has not owned a principal residence in the previous three years and who meets the income limits test may claim the tax credit for a qualified home purchase. The IRS provides a definition of "nonresident alien" in IRS Publication 519.

Is a tax credit the same as a tax deduction? No. A tax credit is a dollar-for-dollar reduction in what the taxpayer owes. That means that a taxpayer who owes $8,000 in income taxes and who receives an $8,000 tax credit would owe nothing to the IRS.

A tax deduction is subtracted from the amount of income that is taxed. Using the same example, assume the taxpayer is in the 15 percent tax bracket and owes $8,000 in income taxes. If the taxpayer receives an $8,000 deduction, the taxpayer’s tax liability would be reduced by $1,200 (15 percent of $8,000), or lowered from $8,000 to $6,800.

For more information regarding the 2009 Home Buyer Tax Credit, please download this guide.Here's a helpful, easy to understand video explaining the $8,000 First-Time Home Buyer Tax Credit.